Germany Sees Decline in Over-Indebtedness, But Concerns Persist

Despite a reduction in debt levels, economic uncertainties and consumer habits pose ongoing challenges.

The number of over-indebted individuals in Germany has decreased for the sixth consecutive year, with a reduction of 94,000 people in 2024.
Economic factors such as inflation fears, geopolitical tensions, and domestic policies contribute to a trend of 'fear saving' among consumers.
The 'Buy now, pay later' model is linked to rising debt levels among younger demographics, prompting warnings from consumer protection agencies.
Regional disparities in debt levels persist, with areas like Bremerhaven and Gelsenkirchen showing higher rates of over-indebtedness.
While unemployment is no longer the leading cause of debt, health issues and economic instability remain significant contributors.